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6 reasons to repair your credit during COVID-19

Whether you’re applying for jobs, looking for a new car or planning to take out a loan, a stronger credit score can help

woman checking credit score
Photo (c) AndreyPopov - Getty

COVID-19 has caused economic uncertainty and led to major changes in the market. Interest rates and credit card rates are low, and we’re currently seeing great deals on cars and homes. Unfortunately, people with low credit scores are less able to take advantage of these low rates. If you want to learn more about what you can do with a stronger credit score, read on.

 

1. Take advantage of great car deals

couple buying car
Photo (c) martin-dm - Getty

People are making fewer significant purchases during COVID-19, so the demand for cars has gone down. As a result, major automakers have introduced some mind-bogglingly good deals on new vehicles. If you have a poor credit score, it’s harder to qualify for a loan with a reasonable interest rate. Once you repair your credit score, you might be eligible for interest rates as low as 0% — that’s what we call a deal.

2. Enjoy lower interest rates

personal loan application
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Have you considered taking out a personal loan in the past but been scared away by high interest rates? The Federal Reserve has slashed interest rates in the wake of COVID-19, meaning lower interest rates for consumers borrowing money from banks. With a higher credit score, you might qualify for these low interest rates to support your business or pay off your car.

3. Spend less on a new home or apartment

couple buying home
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Are you looking to move? Housing demand is down, so houses and rentals are cheaper than before. A weaker credit score may shut you out of a new home or apartment, so consider working with a credit repair company to look at your credit report and dispute negative claims.

4. Owe less credit card debt

older woman making credit card payment
Photo (c) PeopleImages - Getty

Due to job losses during COVID-19, consumers are struggling to pay off their credit card debt. In response, credit card companies have lowered interest rates. This means it’s easier to avoid owing large amounts of credit card debt. Now might be a good time to apply for a new credit card. With a higher credit score, you’re more likely to qualify for credit cards with better benefits and lower interest rates.

5. Find a new job

job search
Photo (c) svetikd - Getty

Jobs you apply to can’t look directly at your credit score, but they can get an idea of your credit history. In a tough job market, it helps to do everything you can get to stand out. This includes improving your credit history, possibly by working with a credit repair company to help strike-off bad marks on your credit history.

6. Make a home improvement

couple renovating home
Photo (c) Vladimir Vladimirov - Getty

Have you been holding off on a new home improvement or renovation? With interest rates so low, now is a great time to get started on that project. A better credit score can help you take advantage of historically low interest rates. See if a credit repair company can help you improve your score, and then apply for a personal loan to help you make your dream home a reality.

young woman doing research
Photo (c) Prostock-Studio - Getty

A higher credit score means you’ll qualify for better interest rates and save money in the long term. One way to raise your credit score is through a method known as credit repair. For more information, check out the ConsumerAffairs Credit Repair Buyers Guide.

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